Online brokers have been increasingly less expensive over the last few years, but it looks like they may be getting even cheaper. The reason being: Zecco.com. Apparently Zecco is offering free stock trades.
It turns out that all the other online brokerages have fairly large advertising costs which require them to charge fairly small trading fees. Zecco on the other hand seems to not focus on advertising their product and receives revenue from the advertising on their website. I have not opened an account with them (although I am still considering it) so I can not speak to the quality of the layout, helpfulness of customer service, or timeliness of trades. But, from what I have seen and heard of them, they appear to be a pretty legitimate operation. A few more of the details:
- Free stock trades (maximum 10 trades a day up to 40 a month. After that, only $3.50 per trade)
- Live customer service 5 days a week
- No account inactivity fees
- Minimum $2,500 to open an account
You can check out the website for more information. If anyone has an account with Zecco.com I would like to hear what you think about it.